As this week's news cycle on tariffs comes to a close (maybe), we would like to provide you with the latest updates and share the newest information available.
Canadian and Mexican Tariffs
President Trump has signed two executive orders that temporarily delay tariffs on products from Canada and Mexico under the U.S.-Mexico-Canada Agreement (USMCA) until April 2. Additionally, the duty on Canadian potash, which is not covered by the USMCA, will be reduced to 10%. The Canadian energy tariff will remain at a 10% duty. The White House has emphasized that this tariff pause is temporary, and President Trump will reassess the exemptions on April 2.
For more details on the USMCA, visit the United States Trade Representative website. We have also attached the fact sheets and Executive Orders provided by the White House for your reference.
Despite this temporary reprieve, President Trump has reiterated his commitment to proceeding with tariff adjustments on steel and aluminum and has hinted at new reciprocal tariffs starting April 2. The administration's stance on long-term tariff relief, however, remains uncertain.
Other Tariffs and Retaliatory Measures: Tariffs on China
On February 4, 2025, the U.S. implemented a 10% tariff on nearly all remaining Chinese imports, which was subsequently increased to 20% on March 4. Additionally, the "de minimis" exemption has been eliminated, meaning low-value shipments (under $800) from China are now subject to tariffs.
In response, China has filed complaints with the World Trade Organization (WTO), imposed export restrictions, and introduced new tariffs on U.S. goods. As of February 10, China imposed 15% tariffs on U.S. coal and liquefied natural gas, and 10% tariffs on crude oil, agricultural machinery, and certain vehicles. On March 4, China expanded these tariffs (ranging from 10% to 15%) to major U.S. agricultural exports, including sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy.
Other Investigations
The U.S. administration invoked Section 232 investigations concerning imports of lumber/wood (ordered March 1, 2025) and copper (Feb 25, 2025). These investigations will assess whether imports are harming U.S. industries and threatening national security. The findings of these investigations are expected by late 2025.
Industry Impact and Advocacy
AmericanHort is closely monitoring the ongoing discussions regarding potential tariffs and their impact on our industry. We are actively tracking key production inputs from Canada and Mexico and engaging with Congressional leaders and key administration officials. Our focus is on highlighting the economic consequences these tariffs could impose and advocating for possible offsets, carve-outs, or government support to mitigate the financial strain.
Please contact Matt Mika or Kamron Newberry if you have questions or need further clarification. Additionally, if you anticipate that these proposed tariffs will impact your business, we would appreciate hearing from you.